A group of creditors who hold more than $379 million of outstanding notes of Satelites Mexicanos, S.A. de C.V. (Satmex) filed an involuntary Chapter 11 petition May 26 against the satellite operator in the U.S. Bankruptcy Court for the Southern District of New York.

Under the proposed restructuring agreement, the petitioning secured and unsecured noteholders have agreed to provide up to $55 million in financing in order to fund the launch of Satmex 6. The satellite has been in storage at the Arianespace launch facility in French Guiana for the last 18 months because Satmex has not been able to fund the launch.

Satmex currently has about $523.4 million of debt in default and is not a party to the restructuring agreement. The company, headquartered in Mexico, derives more than 50 percent of its revenues from U.S. business, and all of the debt was issued in the United States and is governed by New York law.

The restructuring agreement also provides that current shareholders – including Loral Space & Communications Ltd., Principia, S.A. de C.V., and the Mexican government – maintain majority control of the reorganized company.

Under U.S. bankruptcy law, Satmex has 20 days to respond to the involuntary petition. The petitioners have requested that the court waive the customary exclusivity period given to the company in order to implement the restructuring plan as quickly as possible.